What is a call option?

A call option is a contract that gives the owner the option, but not the requirement, to buy a specific underlying stock at a predetermined price (known as the “strike price”) within a certain time period (or “expiration”). For this option to buy the stock, the call buyer pays a “premium” per share to the call seller.

What is a naked call option?

Naked Call Option A naked call option is when an option seller sells a call option without owning the underlying stock. Naked short selling of options is considered very risky since there is no limit to how high a stock’s price can go and the option seller is not “covered” against potential losses by owning the underlying stock.

What is the today' options Statistics Section?

The Today’ Options Statistics section displays the detailed options data. To view the data, click on the V-shaped icon before the section title. You can find the following kinds of data in Today’ Options Statistics: 1. The first section to the left displays a breakdown of the chosen security’s volatility measurements. There are two data points:

What happens if a call option expires?

You pay a fee to purchase a call option, called the premium. It is the price paid for the rights that the call option provides. If at expiration the underlying asset is below the strike price, the call buyer loses the premium paid. This is the maximum loss.